Caesars Entertainment is selling its South African property Emerald Casino Resort to Peermont Hotels, Casinos and Resorts, a Johannesburg-based hospitality and entertainment company, for total proceeds of $49m, which implies a 7.9x multiple on 2018 EBITDA of $6.2m.
Caesars owns 70 per cent of this property, while the remaining 30 per cent is owned by local minority partners. Total cash proceeds to Caesars for its 70 per cent ownership and other adjustments total $39m.
“While Emerald Resort & Casino is a unique property, it receives limited benefit from the Caesars’ Rewards network effect given its remoteness to other properties in our network,” said Tony Rodio, CEO of Caesars Entertainment. “We’re pleased to monetize this non-core asset in our portfolio, which will enable Caesars to sharpen its focus on other strategic markets.”
Caesars Entertainment will continue to operate the property until the transaction closes, which is expected to be in the third quarter of 2019, subject to regulatory approvals and other customary closing conditions.